Sign-up Bonus
Checking the sign-up bonus is one of the biggest things to look for when picking a travel credit card. The bigger the sign-up bonus is, the better.
You usually have a set amount of time to spend a set amount of dollars to earn the bonus.
Every travel credit card has features that no other travel rewards credit card has.
The biggest thing to look for is a large sign-up bonus, the bigger the better. Many cards will offer you at least 25,000 miles when you sign up. But bonuses go as high as 75,000 and can be redeemed for free flights after you meet the minimum spending requirement.
However, there may be reasons why you would choose the lower mileage bonus. Sometimes travel credit cards with lower mileage bonuses may offer greater flexibility, no blackout dates, or no annual fee. Pick the travel credit card that fits your needs and lifestyle.
Miles or Points per Dollar Spent
Usually, most cards offer one point or mile for every dollar you spend. That is great but it might take months to rack up enough miles to earn a free flight. Not to mention, you’ll need to spend hundreds of dollars.
Every mile counts but it’s even better when you get double the miles for every dollar. Some cards offer 2 or even 3 miles for every dollar spent or perks for specific purchases. This can include bonus miles for money spent on flights booked directly with airlines, restaurants, wireless telephone services, etc.
Be sure to get a card that can earn you more than 1 mile per dollar. This could be an easy way to rack up extra miles and, eventually, means more free flights. Some may only offer double miles for specific purchases but the more chance to earn miles the better.
Meeting the Minimum Spend
Meeting the minimum spend is crucial for earning sign-up bonuses. For example, you may have to spend $5,000 in the first three months on one card or $2,000 in the first six months on another. A big difference! Be sure you can meet this spending limit but never spend money you don’t have.
A great way to meet credit card minimum spending is to put everything you are already buying on that card. This includes your everyday expenses like groceries, cell phone bills, clothing, gas, etc.
However, it’s so easy to go on a spending binge and start wasting money, that you don’t own, and start buying the stuff you don’t need.
Don’t spend just to meet a minimum, it makes free points and miles no longer free. Only purchase what you normally would and don’t overstep your bounds.
Avoid Annual Fees
Every travel rewards credit card comes with an annual fee. It can vary widely from $30-$550. However, many credit cards that charge an annual fee waive it in the first year. After the first year, they will automatically charge an annual fee to your account.
If, after the first year, you decide the annual fee isn’t worth it, you can cancel your travel credit card. Before you make that decision, make sure your credit rating won’t go down and you’re able to redeem any rewards you’ve accumulated.
On the other hand, the fees often pay for themselves. For example, when flying with Delta American Express you can check your first bag for free and save up to $60 on a round-trip Delta flight. But it has an annual fee of $95. At $25 per bag, you will earn that annual fee very quickly if you check your bag four times. It just doesn’t make sense to pay for a card with higher annual fees unless you’re a full-time traveler.
Foreign Transaction Fees
Ok, I’ll keep it simple and to the point. Some travel credit cards charge you transaction fees when you use them abroad or online with international retailers.
These fees may apply to any withdrawals (or cash advances) from the ATMs abroad with your credit or debit card. When using your card abroad, the currency must be converted into the proper currency for the payment to be processed. This is where the magic happens.
You don’t want to pay foreign transaction fees. When picking a travel credit card opt for the one that has no foreign transaction fees. This means the card issuer will not charge you a fee (usually from 2% to 5%) to convert the currency in every single transaction.
